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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.


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help! pension cetv

  • lilyrose
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21 Nov 07 #7176 by lilyrose
Topic started by lilyrose
I'm trying to work out my rights with regard to my x2b pension. Does anyone know if there is a simple way to have a stab at working out the CETV of a pension. X2b is 53 and the latest pension valuation was approx £50k, and stated it would give a pension of £3000.00 per year. I am 46 and now work full time,(I took time out to raise our 3 children) but do not have a pension of my own. I would like to know some rough figures before I start negotiating a finacial settlement.

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21 Nov 07 #7188 by Specialdad
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You can ask your ex to get a CETV from his pension company, if that is not possible then a court order will be needed as part of the court proceedings.

  • Louise11
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21 Nov 07 #7192 by Louise11
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Hi Lilyrose,

Pensions huh what a nightmare.

In short...........you are entitled to a percentage of his pension, starting point 50%. But thats it, you can not get a cash lump sum for his pension. It usually gets split and your part of the pension goes into your own pot. Depending on the pension fund, you can either take your share and put it in your own, so you can pay into it and build on it or it stays where it is and you cant add to it, but it builds along with i think inflation, (i.e. like a frozen pension.)
Or you can ask for more of the assets in exchange for leaving his pension alone, the question is how much can you ask for? This is where you have to have a pension actuary report done on it and a Court may order you to if you cant agree a figure. You say his pension CETV is worth 50k, well you cant ask for 25k in cash if u see what i mean. In reality his pension wont be worth 50k cash. You say it will give him a pension of 3k a year, its not a great pension is it?
Looking at it (and I am no expert, so get advice) but I would probably say if it was me, I want 15k more of the assets and you keep your pension. Whether thats fair or not i have no idea. But 15k today in property has got to be worth a hell of alot more when you reach retirement age.
At the end of the day its what you and him think is fair, i just really wanted to warn you that a pension actuary report can cost upto £1000.Is it worth it? I dont think so. Take our case my partners ex wanted a share of his pension, she paid for a report on his pension cost her £1000, (they had been divorced 5 years before she started the proceedings and we had been married 3 years)My husband offered her 50% of his pension at the start. It took THREE years to eventually get to a FH, her legal fees were 30k, she ended up with 30% of his pension. If she had not bothered with a report she would of saved 1k and 30k in fees arguing for a 75% share!
I suggest you and your ex2b sit and talk, dont waste any assets you both have, the only people to get rich are the Lawyers, acturies and anyone else who wants a ruddy fee out of divorce.

Kind regards
Louise

  • lilyrose
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21 Nov 07 #7199 by lilyrose
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Hi Louise thanks for your advice.

I dont think I'll bother with the actuary report, what a rip off! I just wanted a ball park figure to start negotiations with. You're right £3k is not a great deal. I think I'll go for an increased share of the assets as its got to be worth more in the long run.

Kind regards

Lily

  • NE0
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21 Nov 07 #7211 by NE0
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Hi I am an Independat Financial adviser who speialises in divorce. have only just found this website and registered tody. I got divrced over 4 yeas ago now, but managed to "acquire" some of my x's NHS pension so I have some usefull expereince I may be able to share with you ad ultimately help you reach a settlement with your Ex. CETVs are quite tricky!

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21 Nov 07 #7225 by lilyrose
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Thanks any advice would be great. The whole finacial thing is a real minefield. Even things I thought would be straight forward end up so complicated.

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21 Nov 07 #7246 by NE0
Reply from NE0
Great, then let’s see if I can help.
Are you ok discussing this on the forum or would you prefer to use my email address? It’s in my signature if you would prefer this connection
The first thing to consider is what type of pension is it?
There are two main types, the first is a Personal Pension Plan and these are the simplest to deal with. They are usually held with a company you may well recognize such as Standard Life or Legal & General etc
The CETV you have been given may also help answer this question as it may name the pension as the Standard Life Personal Pension plan etc.

The other type of scheme is an Occupational pension run by your ex’s Employer. Quite often these are very good schemes because they promise to pay an amount of salary at retirement hence being known as Final Salary schemes. The bigger the employer then it tends to follow that the better their pension scheme with the NHS and Civil Servants teaches etc being very good ones to have.

So if the pension is type 1 i.e. a personal pension then you would be looking at taking a percentage (assuming you are divorcing in England) of the amount in question. Often solicitors work on a 50 -50 basis but they are likely to get into trouble in the future if they haven’t talked to someone like myself or even an actuary because as a lady you need more money in your pension to buy the same income when you retire because statistically speaking you are going to live longer than us poor men. It’s something to do with the fact we work SOOOO hard during our lives we die sooner!! So to get the same pension you are going to need more than 50%, but this is one asset that your lawyer will be taking into account and it may be you agree to take less pension in order to have the house as an example.

If the pension is type 2, an occupational pension plan then things get a little more complicated because the options open to you may include you being taken into the pension scheme and having your own entitlement. (I have 3 years of my ex’s NHS pension after our divorce) and this could be very reassuring because you don't have to worry about investing the money or buying an annuity when you come to retire. But some schemes don't want ex spouses in them so they offer you a transfer value only and that’s again where I work with my clients to find the best place for their money. It is much harder to value a type 2 pension and depending on the value it can mean involving an actuary. As a rule of thumb if the CETV is over £100,000 then it may be worth considering an actuary’s opinion.
To offer you any more assistance here I would need to know which type of pension it is, if possible the exact amount and also your ages. (Please don't send dates of birth, ages will be fine I don't want to join the HMRC in their leakage of Data!!)
If you could also let me know both of your smoker status and any health conditions that you know about it helps me get the best figures possible of you to consider and negotiate over.

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